By Lee Hyo-sik
POSCO Daewoo has been selected as preferred bidder for a natural gas-fired power plant in Myanmar, the company said Sunday. If the trading and resource development arm of steelmaker POSCO signs a contract, this would facilitate its goal of becoming one of the world’s major utility project managers.
POSCO Daewoo has been diversifying its business portfolios amid sluggish overseas trade and low commodity prices. The power plant business has been one of its new growth engines as it creates a stable flow of income over a long period of time at relatively low risk.
The company plans to sign a power purchase agreement with Myanmar Electric Power Enterprise before the year’s end to construct a 70 megawatt gas-fired power plant in Shwetaung, about 270 kilometers northwest of Yangon.
Under the deal, POSCO Daewoo is expected to operate the plant for 20 years, supplying electricity to businesses and households in nearby areas. The facility is scheduled to be completed by 2019.
The company plans to select a builder and other project partners early next year after signing the contract.
“We competed hard with foreign players to win the latest deal,” a POSCO Daewoo spokesman said. “We were rated highly for our presence in Myanmar since 1985. The ability to raise funds and provide a comprehensive utility system also helped us secure this landmark deal.”
POSCO Daewoo plans to work harder to win additional power plant projects in the Southeast Asian country to capitalize on the rapidly-growing electricity demand there, the spokesman said.
Since 2013, the firm has been producing natural gas in waters off the northwestern coast of Myanmar, most of which is sold to China.